Thursday, January 24th 2008
IBM may Create more Formal Chip Manufacturing Ties with AMD
Industry analysts, and sources, have speculated about the possible creation of a more formal relationship between IBM and AMD. Such a relationship may result in a possible merger between the two companies in the future. An IBM takeover, or joint venture company may result. Such a merger would allow IBM to maintain ties to some management in the computer industry as the company moves more toward technology services. The creation of some sort of more formal association could help inject confidence into AMD which has not reported a quarterly profit since mid-2006. IBM and AMD have been technology partners for several years, and are currently completing a joint manufacturing plant in Malta.
Source:
FT.com
58 Comments on IBM may Create more Formal Chip Manufacturing Ties with AMD
And lets not jump the gun on whether or not they can implement all the power & prestige that the cell processor has gotten praised for. Don't forget they did develop it for a console.
However, I'm sure IBM engineers can combine their knowledge of CPUs with AMDs and BAM! We get SUPERCPU!
I don't think, however, that a merger of the two (actually three if you count ATI) companies would "squash" Intel. While Intel has done there share of fumbling on past chips, they are no fools when it comes to new technology either. If I am not mistaken, their road map for 23nm process is in place and it would not surprise me if they already have working prototypes.
I also don't think that an IBM/AMD merger would stifle competition, I think it would make it more fierce, as it would force Intel to never rest and that would cause the same to be true for the IBM/AMD.
Just think, if Intel merged with NVidia and IBM merged with AMD/ATI, we would see one stunning battle of the titans for both processors and GPUs.
Now if only someone would come along to challenge Microsoft, we could get a big bucket of popcorn and relax and enjoy the show!
It's fun to speculate, no?
Also I don't see Nvidia merging with Intel, Intel like AMD would concentrate on CPU's over video. Plus Nvidia is one of its best years since 2002, why merge if they are outselling AMD at every price point and dominating the market?
@erocker : Mergers many times create stronger companies who can compete more efficiently. Look at AMD at the moment. While they are not clinging on for dear life, it will only take one more failed attempt to one-up Intel and their stock will start look like our thermometers have lately.
I really want AMD to succeed. Getting cash infusions from foriegn investors is not going to cut it if they cannot produce a superior product. They can focus on the mid-range market (which is a cash cow for most companies), but they will be relegated to also-ran status forever if they do not try to compete at the high-end level. AMD needs to do something radically new to change the landscape of the battle.
As always, just my opinion.
How's the weather by you. Pretty cold here up north a bit.
On topic ...
I am really a little perplexed at what will happen in the next year. We have seen quite a bit of merger craziness happening for a couple of years now, but that will only go so far.
I have the feeling that something is going to break (something completely new) that is going to set everyone scrambling to their drawing boards again soon. I am not sure why I have this feeling, but I have it none the less.
I have no idea what it will be. That is unfortunate because if I had any idea I would be making a few investments.
Oh well, I am completely comfortable with "happy" as opposed to "rich".